Chile Senate moves forward with tax‑invariance reform and national reconstruction project

Chile’s Senate Finance Committee approved a controversial tax‑invariance measure that fixes corporate tax conditions for 10 to 20 years, depending on investment size, and offers a 1.5 % corporate rate for firms that opt in. The agreement, reached between Senator Ricardo Celis and Finance Minister, keeps the core benefit of reducing the corporate tax rate from 27 % to 23 % while extending the duration of the regime.

Opposition senators raised constitutional reservations, arguing that the fixed‑term rules would limit future governments’ fiscal flexibility and breach popular sovereignty. The proposal is part of a broader “national reconstruction” bill that also addresses environmental, labor and social development policies, introduces payment facilities for higher‑education loans, and rejects provisions on mandatory on‑site crèches and the practice of anatocism (interest on interest).

The committee’s vote clears the way for a full Senate debate scheduled for 15 July 2026. Critics, such as a Temuco councilor, warn that the reform could shrink state revenue at a time when Chile faces pressing needs in health, pensions, security and climate response.